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Dell Confirms and Details Rival Bids From Blackstone and Icahn
DavidGilbert99 writes "Dell has confirmed it has received 'two alternative acquisition proposals' from billionaire investor Carl Icahn and the world's largest equity firm Blackstone. These bids rival the $24.4 billion offer made by co-founder Michael Dell and equity firm Silver Lake last month, who want to take the company private. Dell also confirmed details of the two offers, with both exceeding Michael Dell's original offer of $13.65 per share, with Blackstone offering $14.25 and Icahn offering $15 per share."
That is what everybody said about Apple when Steve Jobs came back.
And the reason why Michele wants to take Dell private is so he can do some radical things to it. So who knows? Give the man the benefit of a doubt, grab some popcorn, and see what happens - assuming Michele get the company.
Icahnnot believe how much money these folks have.
.... Apple is one of the most popular brands ever and that's because it re-invented itself. Dell has a shot at re-branding itself with the right leadership.
I hope they do and are successful once again.
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Those who can, do. Those who can't, sue.
..time to go long on Dell stock?
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I have to give the thumbs up to taking Dell private. It's the best hope of survival.
They need less corporate idiots ruining it and more radical thought.
And the reason why Michele wants to take Dell private is so he can do some radical things to it. So who knows? Give the man the benefit of a doubt, grab some popcorn, and see what happens
He's already CEO and Chairman. If he can take the company in new profitable directions, then there's no incentive for the other shareholders to sell because they they'd be giving up their shares just before they become more valuable. Their only sensible choice is to get as much money as possible for the shares now, since, if it goes private, they'll never be able to own part of Dell again.
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No story mentions that. He certainly doesn't have 26.8B dollars. Is it a bluff to get the dividends he wanted?
your thin skin doesn't make me a troll
Actually Dell has plenty of financing,servers, and consulting business. They are moving so they sell "IT departments" in a box and hardware is just one piece... Vertically integrated.
This is a last ditch attempt by big holders to fuck it over before it goes private and the board can just ignore such offers outright.
But he was still forced to do things the way Wall Street and the stockholders wanted. Take it private and you have more leeway to do things that might be profitable long term rather than short term.
The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
and the services business is going down the toilet
big companies have their own IT
the little guys buy into da cloud
installing Exchange isn't that hard. most of the problems are due to being cheap, not bad planning
I don't know what his plans might be, but there's a world of difference between publicly traded and privately held companies. There are a whole slew of constraints on what a public company can do, between regulations and notions of 'fiduciary duty'. Not to mention the obligatory lawsuits every time the stock price dips. I think we can expect to see more and more companies going privately held when large changes need to be made.
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Witness first hand the attempted destruction of a large American company. These bids aren't serving anyone's interest except a select few. (Despite claiming to be for "shareholder interest")
If any of these parties get hold of Dell, the company will be dead inside a few years. Assets stripped, loaded with debt, pensions and retirement plans raided, thousands laid off. Sound familiar? Yeah, it does. Because you've seen it happen hundreds of times if you read the news.
Something is broken. Why is there so much money to be made by destroying companies, jobs, and livelihood? Why is it legal?
How long before we resort to publishing the personal details, addresses of corporate raiders and mailing them to the millions who have lost their jobs and had their retirements stolen? While vigilante justice isn't a solution, it is a failure mode. And failure is what is happening here.
...are likely to be Dell's current shareholders who may end up collecting a tidy premium for their shares. http://en.wikipedia.org/wiki/Winner's_curse Let's hope that the ensuing bidding war does not cause Dell to be saddled with a crippling amount of LBO debt.
NOT. Dude, you're getting a signal here.
if this is supposed to be a new economy, how come they still want my old fashioned money?
Apple develops their own CPUs?
Do you mean the Motorolas, the PowerPCs (a consortium of apple, ibm, and motorola. That's two experienced chip designers and apple.), or do you mean the current Intel CPUs?
Well, that's it for their computers. I actually have no idea what their portable istuff uses, but I'm rather doubtful it's something they developed. Considering their standard method of obtaining 'cutting edge tech' they either bought and exclusive contract with the developer/manufacturer, or they bought the company itself.
Apple designers have always been great, their engineers don't fall into that category.
I know, the apple fanboys are going to go ballistic over this criticism of their god and savior, and honestly, I don't care.
So...MD should call Icahn on the offer, take his cut up front and walk. Then either buy the pieces back at a fraction of the price when the company goes toes up or just take the money and start a new company that does it just the way he wants to go, but without all the baggage.
Is it just my observation, or are there way too many stupid people in the world?
Their portable istuff uses ARM SoCs designed by Apple (they've bought up P.A. Semi, Intrinsity, and a couple other fabless semi companies in the past few years). ARM (the company) was a joint venture between Acorn and Apple back in the Newton days.
Do you even lift?
These aren't the 'roids you're looking for.
Yes. In order to imitate Apple he needs to take company private just like Apple did ... oh wait
Who logs in to gdm? Not I, said the duck.
And the reason why Michele wants to take Dell private is so he can do some radical things to it. So who knows? Give the man the benefit of a doubt, grab some popcorn, and see what happens
He's already CEO and Chairman. If he can take the company in new profitable directions, then there's no incentive for the other shareholders to sell because they they'd be giving up their shares just before they become more valuable. Their only sensible choice is to get as much money as possible for the shares now, since, if it goes private, they'll never be able to own part of Dell again.
That wont happen in the next quarter though? Computers make money based on spreadsheets. Not long term strategy. You either raise the price in the next 4 months or be fired. Pick your poison? Apple was only able to pull off the move to intel macs because of sales of its IPODs. Jobs could only make the IPOD by first selling iMacs etc. If something is not increasing in value quarter by quarter you can't invest to make more money. You need short term money RIGHT NOW so the computer programs can raise the price in a few milliseconds and the owners get that slight profit from the volatility.
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Yes. In order to imitate Apple he needs to take company private just like Apple did ... oh wait
That was a different situation. When Jobs returned to Apple, the shareholders understood that the company was in deep doo-doo and radical changes were needed. So Jobs had a lot of leeway.
Dell, OTOH, is doing okay in terms of short term profit (PE is around 8). It probably needs some radical changes for the long term because the market it moving away from Dell's strengths. But there is no shareholder consensus about this. As long as it is a public company, different shareholder factions will be pulling in different directions, and any strategy will be a muddle. As a private company, they can set a clear and decisive strategy and stick to it.
Nonsense. There is nothing to indicate "everyone else" will be worse off with Icahn's offer.
Right, nothing but the lessons of history.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Unfortunately, these "going private" deals usually end with an IPO 2-3 years later. Same old compay with extra debt! The refinancing will make no difference to Dell, since "providing useful products and services at a profit" is what management should be concentrating on.
1) Use other people's money to buy up company
2) Pay self fees for being the Buyout fixer (Profit $$$)
3) Wait 2-3 years
4) Perform IPO
5) Pay self fees for being the IPO fixer (Profit $$$)
6) Sell new shares (Profit $$$)
227-3517
Um... Directors, officers, and controlling shareholders of a company still owe a fiduciary duty to that company regardless of public or private status. An advantage of taking it private is that Dell will remove the pressure from Wall Street. Assuming that equity of a closely held company is less fungible, the equity investment Dell receives on the buyout will be more stable and locked-into. It won't feel the pressure to distribute dividends. It also might be able to restructure the corporate form for Federal tax purposes. I assume Dell is taxed as a C corporation, which has two-tiers of tax, one at the corporate level and one at the shareholder. Suppose Dell qualifies for pass-through taxation after the smoke clears on the leveraged-buyout. Now, the tax liabilities of the company pass to the shareholders. Michael will be able to capture all those capital losses (or gains.) Finally, the leveraged buyout proposed by Michael allows Dell to convert its capital from equity to debt. The Federal income tax code loves debt. Dell will be able to deduct that interest, which lowers its taxable income and might even pass to Michael.
Uhhh...has anybody looked at the actual numbers? Both sales and profits are already back to pre 2008 levels, the company is firing on all cylinders frankly the ONLY thing that hasn't gone up is the stock price which considering how distorted the market is right now really isn't surprising and I would say should be expected. I just hope they keep Icahn the fuck away from it as that corporate raider has a history of destroying companies but Michael is just being smart, he sees the numbers and sees the stock is undervalued and is going for it, can't say as I blame 'em.
ACs don't waste your time replying, your posts are never seen by me.